San Marina, CA broker Rusty Tweed made investment mistakes that cost him about 800,000 in 2017. He shares with new investors how to avoid the financial trouble he has experienced since 2010. Some advice he offers, however, he learned as early as 2004.
“By starting with a couple of properties you can learn what to do and what not to do before you expand,” Rusty Tweed would usually say to beginning investors.
He also advises real estate buyers to focus on their first two purchases until they make a profit. Tweed reportedly says this to help beginner investors avoid overextending themselves.
Rusty Tweed reminds property investors not to spend more than earned and tells them to create an expense list. According to him, seeing that list helps investors prioritize their current expenditures and plan for future costs. Tweed also says that utility companies will offer suggestions concerning lowering monthly bills.
Tweed’s budgeting advice also pertains to evaluating maintenance and upgrade costs. For instance, some older homes might need new flooring or a fresh coat of paint. If flipping homes, he says that most buyers will choose houses that need upgrades “within budget.” Adhering to a maintenance budget also can lower investment risk.
Prepare for Disasters
Fires, windstorms, and accidents occur on investment properties. No one ever knows when a disaster will occur, but Rusty Tweed says to prepare for them all.
Tweed also has published warning signs of black mold. He says to call a professional as soon as possible after smelling or seeing mold, which occurs near leaky pipes and on water-damaged surfaces. All information he provides ties into preventing health and financial issues that neglected occurrences cause.
Rusty Tweed says, “location is everything” and offers advice on proximity to an investor’s location. Concerning this, every neighborhood has variable market values that affect real estate profits. In addition, Tweed recommends either purchasing properties as close as possible to home or hiring a property management team.
Learn Tax Laws
Rusty Tweed states that new investors could pay the price for not knowing current or relevant tax laws. Some of the advice he offers pertains to mistakes he made in the past. However, it also involves education to beginners concerning investment property tax deferrals. Tweed first learned about 1031 Exchange procedures for deferring taxes in 2004. Since then, he began teaching others his process.
About Robert Tweed
Also known as Rusty Tweed, he has assisted clients with more than 100 property exchanges. Much of this involves facilitating 1031 exchanges with the tax deferral advice he learned in 2004.